SBA loan applications will drive other assistance for Estes Park

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December 2 is the new deadline for filing SBA loan applications for physical damage to your business. Although the deadline for economic loss loans is longer, please take advantage of the local assistance available from the SBA Business Recovery Center. Face-to-face assistance can be invaluable. The Business Recovery Center at the Stanley Hotel also includes a table from the Larimer Small Business Development Center, where you can learn more about their free consulting services.

Why is it important to apply for an economic loss loan now? Well, the first answer is that it has the potential to directly help your business with a low-interest loan.

Some sobering statistics I heard recently put the importance of maintaining cash flow into perspective. According to FEMA statistics, about 40 percent of businesses do not reopen after experiencing a disaster. Another 25 percent will close permanently within a year. There is a wide range of estimates of post-disaster business closures, some higher and some lower. Some communities do a better job of mobilizing to support local business than others.

The question for your business is simple: what do I need to do to make my business sustainable for the long term? Aside from physical damage, the most common reason for businesses to close is lack of funds. Without loan assistance, the loss of cash flow in the wake of a disaster leads to the business closing for good. Applying for an SBA loan does not obligate you to accept the full amount of a loan, nor are you obliged to take all the money at once. Meeting the cash needs of each business is an important part of the program.

The reopening of Highway 36 was good news, but it does not guarantee that our economy will bounce back to normal. A large-scale disaster has economic impacts that can last for years. A five-year time horizon for gauging the impacts as well as measuring the community’s response is typical.

A second reason to apply for an SBA loan has to do with our entire community. For every business that closes, the whole community will suffer. All sorts of federal, state and private grant organizations will be looking for evidence of the need for assistance to our local businesses. Some federal agencies look specifically at statistics concerning the number of businesses that have applied for SBA loans.

In 2011, the Town of Estes Park conducted a Citizen Survey. Its findings were striking. When asked to evaluate the pace of jobs growth in Estes Park, 52% of respondents rated it “somewhat too slow” and another 32% rated it “much too slow.” Thus, over 80 percent of our local residents recognized the need for more job growth in the Estes Valley.

The need for jobs is much more acute now. Hundreds have lost work in the wake of the flood.

Our whole community depends on the success or failure of local businesses. Not every business will choose to reopen. For those returning to business, it would be unfortunate to see those businesses close one or two years later due to failure to seek an SBA loan. Starting the process now can help you reduce uncertainty and understand some of your options.